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Avista Withdraws Water Rights Permit from the Rathdrum Prairie-Spokane Valley Aquifer
The need for electric supplies from a combined cycle combustion turbine was met with the company's purchase of the remaining 50 percent interest in Coyote Springs 2

Spokane, Wash., October 4// -- Late last week, Avista Corp. (NYSE:AVA) withdrew its applications for a water rights permit from the Idaho Department of Water Resources. The permit was originally submitted in January 2002.

The need for a new combined-cycle combustion turbine, which would have required a water permit, had been met in January 2005 when the company purchased the remaining 50 percent interest in Coyote Springs 2 in Boardman, Ore.

Avista Corp. is an energy company involved in the production, transmission and distribution of energy as well as other energy-related businesses. Avista Utilities is a company operating division that provides service to 330,000 electric and 285,000 natural gas customers in three western states. Avista's non-regulated subsidiaries include Avista Advantage and Avista Energy. Avista Corp.'s stock is traded under the ticker symbol "AVA." For more information about Avista, please visit www.avistacorp.com.

Avista Corp. and the Avista Corp. logo are trademarks of Avista Corporation.

CONTACTS:

Media: Catherine Markson

509-495-2916

catherine.markson@avistacorp.com

Investors: Jason Lang

509-495-2930

jason.lang@avistacorp.com

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